Here are the details of this case.
On 04 May 2020, Mr Lukhar Dadar Singh Dhalu (“Mr Singh Dhalu”) caused Concept A Trading Ltd (“CAT”) to apply for a Government backed Bounce Back Loan (“BBL1”) totalling £50,000 for which it was not eligible by including false information relating its trading period trade.
Thereafter the BBL1 was paid into CAT’s Lloyds Bank account on 05 May 2020 and was not used in its entirety for the economic benefit of the business.
Further, On 15 May 2020, Mr Singh Dhalu caused CAT to apply for a second Government backed Bounce Back Loan (“BBL2”) totalling £50,000 for which it was not eligible by including false information within the application by not declaring that it had previously applied for and obtained BBL1, as well as including false information relating to its trading period.
Thereafter BBL2 was paid into CAT’s HSBC Bank Account on 31 May 2020 and was not used in its entirety for the economic benefit of the business.
In that:
- Lending requirements/declarations BBL1 and BBL2 Trading
- The applications for BBL1 and BBL2 required the applicant to confirm that CAT was carrying on its business as a 01 March 2020.
- CAT’s bank statements record no trading took place during the period 26 November 2019 to 2 April 2020 (the only credit received during this period being in the sum of £1 paid into the account on 20 January 2020).
- The bank statements confirm that CAT was not trading as at 01 March 2020.
BBL2 only Second BBL application
- On 15 May 2020, Mr Singh Dhalu, on behalf of CAT, applied for and subsequently received BBL 2 from HSBC on 31 May 2020, despite having already applied for and received BBL 1.
- The completed BBL application form for BBL 2 failed to declare that CAT had previously made a successful application for a Bounce Back Loan (BBL1) having received these funds into its bank account on 5 May 2020.
- BBL2 was paid into CAT’s HSBC Bank Account on 31 May 2020.
Use of moneys obtained
- Application forms for BBL and BBL 2 required the applicant to confirm that any funds would be used for the commercial benefit of the business and would not be used for personal benefit.
- Between 01 June 2020 and 2 July 2020 CAT made payments totalling £98,300 to as supplier purportedly in the purchase of personal protection equipment.
- Mr Singh Dhalu claims that the equipment was never supplied to the Company or was of poor quality rendering it unfit for purpose.
- Payments totalling £10,169 were also made between 07 May 2020 and 21 May 2020 to RS Dhalu reference “Uni Loan” and “Apartment Loan”.
- The BBL1 and BBL2 remained outstanding in the total sum of £100,816 on liquidation.
